The UK Treasury Department has decided to continue developing a legal framework to regulate stablecoins, even despite the recent fall of TerraUSD (UST).
Her Majesty’s Treasury announced that it would continue to develop a legal framework to regulate stablecoins to include them in financial legislation as a means of payment. This is reported by The Telegraph.
Amid the recent collapse of TerraUSD (UST), one of the most popular algorithmic stablecoins, the UK Treasury Department continues to work on a bill aimed at legalizing stablecoins. According to Prince Charles, the bill would reduce economic crime and promote business development.
However, Her Majesty’s Treasury is not planning to include algorithmic stablecoins such as UST in the legislation, stating that “they do not guarantee stability.” The government also stressed that some stablecoins are not suitable for their purposes because “they share characteristics with unbacked crypto-assets.” The regulator intends to continue to monitor the crypto-asset market in order to pass a bill on stablecoins in the foreseeable future.
The legalization of stablecoins is part of a plan to bring digital technology into the UK financial markets and develop the cryptocurrency industry as a whole. The innovations are intended to provide conditions for the issue of stablecoins, their adoption as the official means of payment for goods and services, as well as investment in digital assets.
Recall that the British Central Bank prepared a regulatory framework for the cryptocurrency market in March.
